PPB July 2018

Raising Business Capital | FEATURE I f you’re a business owner or a part of the leadership team, you’ve likely felt some company growing pains. The remedy for this—and the avenue to greater success— is often business capital. Simply put, business capital is an infusion of cash or credit to help companies expand, acquire or merge—events that the promotional products industry has experienced on an exponential scale over the past several years. Jonathan Isaacson, CEO of Lawrence, Massachusetts-based supplier Gemline, says the reasons for raising capital can depend, in part, on what stage of operation or growth a company is in. “Young or early-stage companies may raise operating capital simply to get started,” he says. “There’s less startup capital in this industry than in, say, technology or biotech where getting an initial product launched can be very expensive, but it does exist.” David Nicholson, president of supplier Leed’s, a Polyconcept company, in New Kensington, Pennsylvania, adds that the most common reason companies in promotional products may raise capital is to support growth and expansion, through acquisitions, inventory investment and/ or additional capacity. “Raising outside capital can also be a path to address family business transition needs or business succession issues where a founder may be looking to retire,” he says. If your company wants to finance inventory to support client programs, that’s another reason to pursue capital, says Phil Koosed, co-founder and CEO of distributor BAMKO, a division of Superior Group of Companies, in Los Angeles, California. “More and more we are seeing that bigger programs, particularly when working with Fortune 500 companies, require significant capital READY , SET , GROW Raising capital is a necessary part of growing a business. Learn how to get what you need, without getting in over your head. by Jen Alexander | JULY 2018 | 55